NASDAQ: SEV

● Established
a network of suppliers for future production parts and capital equipment, including strategic
relationships for battery pack manufacturing and the supply
of battery cells;

● Built
nine drivable prototype vehicles and completed the assembly of our first of several validation vehicles
using production-intent parts, which is currently undergoing testing and certification to confirm the reliability of our design prior
to entering low-volume production;

● Initiated
our validation vehicle assembly line in Carlsbad, California, validating our “Body in
Carbon” (BinC) assembly fixtures and bonding processes;

● Conducted
initial coast-down and aerodynamic testing to gather preliminary real-world data for correlation
with our internal simulation models.

Financial
and Operational Milestones:

● Amassed
over 49,000 vehicle reservations;

● Completed
a direct listing of our Class B Common Stock on Nasdaq in October 2025;

● Instituted
an Equity Line of Credit (ELOC) allowing us to raise up to $75 million based on certain stock
price and volume restrictions;

● Completed
our first follow-on capital raise as a publicly traded company, raising approximately $9
million in gross proceeds in January 2026 followed by an additional $8.1 million from subsequent warrant exercises, including a warrant inducement transaction
completed in March 2026;

● Prior
to our direct listing, raised over $147 million in funding from over 19,000 investors;

● Implemented
a variety of internal control and corporate governance protocols as we prepared for our public
listing and to scale our business to start of production;

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● Secured
grant funding commitments from the California Energy Commission (CEC) to accelerate the development of our solar manufacturing processes,
subject to milestone achievement and certain conditions;

● Created
a robust intellectual property portfolio.

Our
Advantages

Unlike
legacy vehicle manufacturers that are vertically integrated into capital-intensive fabrication—such as steel stamping, engine machining,
and complex painting—we have adopted a systems integration approach focused on efficiency. By leveraging validated Tier 1 and Tier
2 automotive components within our proprietary ultra-efficient architecture, we believe we achieve a level of energy efficiency that
is difficult to match with traditional vehicle platforms.

Our
primary advantage lies in our asset-light assembly strategy. We focus our internal resources on high-value proprietary integration rather
than commodity part manufacturing. We believe this provides us with a significant competitive edge in:

● Reduced
Capital Expenditure: By sourcing major sub-assemblies (such as the drivetrain and structural
safety cell) from specialized global leaders, we avoid the massive capital expenditures associated
with heavy industrial fabrication.

● Speed
to Market: Our modular assembly process, utilizing precision bonding fixtures, allows
us to scale production in smaller, flexible increments rather than building monolithic, single-purpose
factories.

● Risk
Mitigation: Using “off-the-shelf” automotive-grade components that have already
undergone millions of miles of validation allows us to focus our testing and certification
resources on our core differentiators: solar and aerodynamics.

While
we utilize a global supply chain for physical components, we maintain deep internal expertise and proprietary intellectual property in
the key areas that define the Aptera experience:

● Integrated
Solar Technology: Our proprietary automotive-grade solar integration allows for high-efficiency
energy capture directly into the high-voltage battery system, providing up to 40 miles of
daily range without a grid connection.

● Advanced
Power Electronics: Our in-house developed power conversion systems and Battery Management
System logic are specifically optimized for our unique ultra-low-drag vehicle dynamics.

● Proprietary
Vehicle Software: Our centralized vehicle control software manages the unique drive-by-wire
and torque-vectoring requirements of our three-wheeled, all-wheel-drive platform.

We
believe our “Efficiency First” architecture creates a superior value proposition for the consumer through:

● Energy
Independence: The potential for many owners to satisfy daily driving needs through solar
alone, significantly reducing or eliminating fuel and electricity costs.

● Reduced
Maintenance: Our three-wheel design and simplified assembly (using approximately 90%
fewer parts than a traditional internal combustion engine vehicle) are expected to result
in lower long-term maintenance costs and increased vehicle longevity.

Our
Product

We
have designed the Launch Edition Aptera to serve as our initial market entry vehicle, featuring a unique combination of ultra-aerodynamics
and integrated solar charging. We are targeting the following technical specifications for the Launch Edition:

● Range:
Up to 400-mile range on a single charge.

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● Solar
Integration: Approximately 700 watts of embedded solar cells, designed to provide up
to 40 miles of solar-generated range per day in optimal conditions.

● Charging:
Equipped for Level 1 and Level 2 AC charging, and compatible with Level 3 DC fast charging
via the North American Charging Standard connector.

● Configuration:
Two-passenger seating with 32.5 cubic feet of rear storage capacity.

In
addition to these features, our target vehicle specifications include an energy consumption rate of approximately 100 watt-hours per
mile. This efficiency is approximately one-third of the current industry average (Source: ev-database.org). We have achieved this
through a target curb weight of approximately 2,200 pounds and a specialized “Body in Carbon” (BinC) structural safety cell.

While
we previously anticipated completing vehicle validation and commencing low-volume production by the end of 2024, we did not achieve this
timeline. This delay was primarily due to the timing of securing necessary capital to fund our supply chain commitments and tooling requirements.

Following
our listing on Nasdaq in October 2025 and subsequent capital raises, our current operational focus is on the completion of our validation
vehicle program. As of early 2026, we have initiated the assembly of our production-intent validation vehicles. This phase is critical
for:

● Finalizing
durability and crash testing;

● Completing
FMVSS, DOT, and EPA certifications; and

● Refining
our final assembly sequences in our Carlsbad, California facility.

We
remain committed to commencing low-volume production as soon as possible, with a current goal of delivering the first customer vehicles
in 2026. However, our ability to meet this timeline remains strictly dependent on our ability to secure additional financing to transition
from the validation phase to full-scale production readiness.

For
a detailed discussion of our capital requirements, see Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations — Liquidity and Capital Resources” and “